Business studies is the study of the economic activities of businesses. It provides the knowledge that companies need in order to compete in the market. By doing so, business owners can improve their efficiency and make better use of their resources. The principles of business economics are used to predict the behavior of firms in various situations. The various economic concepts such as asset and liability analysis, cost of capital, and information technology, are also applied in this branch of economics.
Applied business economics is a broad field in economic research that makes use of statistical techniques and economic theory to study the interactions of firms with each other and with the market, focusing on the production, planning, marketing and consumption of goods or services. Business economists also consider the effect of governmental policies and regulations on firms. There are two main theories that are used in applying economics to business: macroeconomics and microeconomics. Micro economic concepts are those of production, exchange, consumption, and financing that are observed at the level of the firm. On the other hand, macro economics discusses concepts that affect the total economy, including government finance, investment, monetary policy, and budgeting.
Managerial economics is the branch of economics that studies the decisions and behavior of managers. Different economic models are used to study managerial decision making in business. Some of these include the finite state model, human capital, firm scheduling, firm pricing, optimal Pricing theory, and portfolio theory. Managerial economics also makes use of micro-economic systems such as production management, financial accounting, marketing, supply chain, and decision making. Most of these concepts are based on theories that are dominant in scientific research. A few concepts, however, are currently not well understood by managers.
The business cycle is a part of fundamental economics that concentrates on business cycles. These include business cycles that go from start to peak, as well as between troughs. Business cycle provides a comprehensive description of how different parts of an economy cycle together and form a complete picture of business development. The analysis of business cycle helps business analysts to assess the strength and weakness of various economic concepts and develop a strategy for use in improving a firm’s performance. Analysis of business cycles helps to make better use of monetary policy.
Public economic policy is an important branch of economics that makes use of national, regional, and global policies to implement economic activities. It makes use of tax, spending, and other economic tools to promote economic growth and decrease poverty. Public economic policy is related to macroeconomics. Public policy economists have strong background in theory and practice, and use mathematical techniques to examine various public policy problems.
Public administration refers to those in charge of running a country, whether an individual or a government institution. Business economics majors who choose public administration as their major are required to specialize in public administration. Public administration entails management of governmental policies that affect the economic health of the nation as a whole. Examples include labor policies, health care policies, childcare policies, family and nutrition policies, and environmental policies. Public administration majors mainly focus on macroeconomics.
Another branch of business economics majors is the market economics concentration. The market economy is the study of how buyers and sellers interact with each other, as well as the broader economic system as a whole. Market economy is primarily research oriented. Business economists who choose this concentration specialize in studying how consumers and producers interact with each other, how firms and industries compete with each other, and how government policies affect the economy as a whole. Unlike public administration, market economy majors have more opportunities to develop scientific knowledge. Market economics concentration includes a good amount of mathematics and science, especially if students choose to major in the applied economic theory.
There are other specializations in business economics Majors. One specialization is in international business. Studying international economics gives business economists an opportunity to look into the factors that affect international trade. Students also may choose to major in political science, law, or health care, each of which has their own particular area of focus. There is also an emphasis on statistics and math for these business economics majors.